Early July is an exciting time in teaching hospitals across the country. A new batch of medical students suddenly makes the transition from debt accumulators to debt repayors. According to some statistics, the average medical student now has over $180,000 of debt when they graduate from medical school, and they are woefully unprepared to manage it. Debt management is not covered in medical school, and sound financial advice for new residents is rarely found on the agenda of new resident orientations. Even if it was on the agenda, most new residents I work with are not worried about their debt; they are concerned about being on call for the first time!.
If you have school age children, investing in your children’s education is one of the wisest investments you can make. There is no greater head start to success you can give your children. Education is also one of the most expensive decisions you can make. There are seven reasons why physicians spend tens of thousands of dollars a year to send their children to private schools despite the high costs.
Is the cost of private school for your children worth the investment? Like most financial decisions, the answer is, it depends. Let’s look at a young physician family with three children at home.